International Financial Management

Syllabus

International Financial Management

Module 1: Global Monetary System                                                            5 Hours

Introduction and Scope of International Finance, Evolution of International Monetary System. The Current Exchange Rate Agreements, European Monetary System, Fixed vs. Flexible Exchange Rate Regime, Exchange Rate Policy and Monetary Policy, International Liquidity and International Reserves.

Module 2: Balance Of Payments (Bop)                                                       5 Hours

Introduction, Functions and Principles of BOP, BOP Accounting, Components of the BOP, ‘Surplus’ and ‘Deficit’ in BOP, Importance and Limitations of BOP Statistics, Relationship of BOP with other Economic Variables. Capital Account Convertibility.

Module 3: Foreign Exchange Markets                                                     14 Hours

Introduction, Structure of Foreign Exchange Market, Mechanics of Currency Trading, Types of Transactions and Settlement Dates, Exchange Rate Quotations and Arbitrage, Exchange Rate Determination and Forecasting, Introduction to Currency Futures, Currency Options, Forwards and Swaps.

Module 4: Foreign Exchange Rate Determination                                  8 Hours

Introduction, Purchasing Power Parity Theory, Interest Rate Parity Theory, International Fischer’s Effect, Pure Expectations Theory.

Module 5: Management of Foreign Exchange Risk                              12 Hours

Exchange Risk, Types of Exposure, Tools and Techniques of Foreign Exchange Risk Management, Management of Translation Risk Management of Transaction Risk, Management of Economic Risk (Including Simple Problems), Risk Hedging Strategies: Internal–Netting, Lead and Lags. External–Forwards, Futures, Options, Money-Market Hedging, Currency Swaps.

Module 6: Managing Foreign Operations                                               12 Hours

Foreign Direct Investment, Multinational Capital Budgeting (Including Problems). Control and Performance Evaluation of Multinational Companies.

International Taxations (Double Taxation Avoidance, Relief Provision in India, Special Prov. Relating Avoidance of Tax), International Banking (International Debt Crisis, Baker’s Plan), Financial Depressions-Effects on International Banking. Crypto Currency, ADR and GDR.